CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Bankruptcy: Is It Time to Rethink Your Reasons for Not Filing?

For many, bankruptcy is an absolute last resort – the final step a person takes after he or she has tried ignoring the problem, negotiating with creditors, and maybe even begging for relief.

In some cases, bankruptcy is avoided because of its reputation. Of course, bankruptcy is nobody’s first choice for managing debt, but it can be an effective tool for helping you resolve serious financial challenges, once you understand a lot of its reputation is based on myth.

If you’ve been using excuses to avoid bankruptcy or you’ve heard it’s the worst thing you can do, it’s time to take another look. What are some of the most common reasons people avoid filing for bankruptcy and what should you know about the process before postponing filing for another day?

Bankruptcy Does Not Mean You’ll Never Get Credit Again

Bankruptcy has an effect on your credit, and there’s no mistaking, it’s a negative effect. You’ll struggle for some time after filing to rebuild your credit, and there’s a chance you’ll be turned down for loans because you filed.

But think about your current situation.

Would you be approved for a loan based on your current financial conditions? Is missing payments every month and getting deeper and deeper into debt with fees and penalties helping your credit?

Of course not.

So while your credit will take a hit from bankruptcy, it’s the last hit it will take before you begin rebuilding. Filing for bankruptcy is the first step you’ll take to a new financial beginning.

To learn more about rebuilding your credit after bankruptcy, check out this article from NerdWallet.

Bankruptcy is a Cop Out and I’m Responsible for My Debts

Many people avoid filing because they view it as giving up or cheating the system. They believe if they incurred the debts they should pay them back, in full.

The problem is paying back a debt in full isn’t always an option. The terms of a loan can make it impossible to ever repay it, especially with high interest rates, ballooning payments, penalties, and all of the fees associated with it.

Wanting to follow through on your commitment on a loan is admirable, but it isn’t always the smartest financial option. Not to mention it can put your family at risk.

Ask yourself “could my pride and my desire to follow through could cost my family their home or jeopardize my children’s education?”

Bankruptcy provides certain financial protections and as much as you don’t want to accept it, filing might be what’s best for your loved ones.

Bankruptcy is Embarrassing

The simplest way to deal with the feelings you’re having about bankruptcy is to take an objective look at your situation. The bottom line? It might be embarrassing or you might feel ashamed, but if it ultimately helps your situation, why worry about how you are feeling in the present moment?

Dealing with long-term money problems, fighting off creditors, and being taken to court to have your wages garnished or a lien put on your home is just as embarrassing – maybe more so – than filing for bankruptcy. Let go of your current attitude toward bankruptcy and accept it for what it is: a tool that can help you improve your situation.

If you’d like to learn more or you’re ready to discuss the benefits bankruptcy has to offer, contact the Law Office of Robert M. Geller at 813.254.5696.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

5 Common Budgeting Mistakes Newlyweds Make and How to Avoid Them

Budgeting mistakes are common, especially when you’re young. Not all newlyweds are young adults, but many first-time marriages do involve...
Read More

When Should Married Couples File for Bankruptcy Together?

There's no easy answer to the question of timing when it comes to bankruptcy. In some cases, it may make...
Read More

Can Your Spouses Debt Force You Into Bankruptcy?

If you're married and your spouse has a lot of debt, you may be wondering if that debt can force...
Read More

Do You Need a Bankruptcy Attorney If You’re Divorcing with Financial Problems?

Divorce and bankruptcies are more common than many people realize. Financial problems make a stressful transition even more difficult. If...
Read More

Can You File Bankruptcy without Your Spouse?

Filing for bankruptcy is a decision that should not be taken lightly. It can affect your financial life and the...
Read More

How Seniors Can Avoid Bankruptcy

Seniors are at a high risk of bankruptcy, but there are ways to avoid it. What do you need to...
Read More

What Happens If I Own Too Many Assets to File for Chapter 7?

Does hiding assets in bankruptcy protect them from your creditors? If you own too many assets to qualify for Chapter...
Read More

How to Find the Best Lawyer for Filing for Bankruptcy after Retirement

Many retirees decide to file for bankruptcy as a way to get a fresh start. But finding the right lawyer...
Read More

Does Declaring Bankruptcy Affect My Retirement Savings?

When you're struggling with debt, the thought of bankruptcy might cross your mind. But what would that mean for your...
Read More

Is a Reverse Mortgage Right for Me?

Reverse mortgages in Florida are loans that allow homeowners 62 and older to borrow against the equity in their homes....
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions